Standard Dep. key LINA , continue depreciation beyond planned useful life

[Former Member]

Hi ,

We have been using LINA since SAP implementation .  However now we are noticing that LINA continue depreciation beyond planned useful life ( depreciation extend by few months) and it also does curb. I understand that it is happening because of base method 0009 ( which allow both  Dep. after planed life end and Curb) .

In my example

Asset planned useful life    =  5 Yr.  ( from April 2008 to March 2013)

Date of acquisition / Dep. start date : April 2008   ( we are following calendar year Jan to Dec)

Cost                                   = $979

So monthly depreciation should be = $16.32

Monthly depreciation is correct from April 2008 to Dec 2012 , however from Jan 2014 , it depreciate $14.19 from Jan to March and , remaining $6.40 in April .

I know this is happening due to LINA ( base method 0009) , But is it a best practice to use LINA with above behavior. I think most of the companies use LINA for straight line depreciation , but is above behavior not an issue ?

Also I tested if I create a new Depreciation key with 0011 base method , there is no extension beyond planned useful life , but anybody has any experience using 0011 as base method , will there be other type of problems /issues with 0011 ?

Thanks

RP

[former_member182098]

Hi R P,

Use 0011 as the base method, it should work correctly for your requirement.

Moreover, have a look at your multi-level method,

9999 999 12 24 & select remaining useful life

Select validity start according to your requirement (usually it is depreciation start date)

Hope this would works for you.

[raymond_moynihan]

Hello RP,

Referring to your enquiry, I can suggest that you choose a depreciation
method which depreciates over remaining useful life in the multilevel
method.
Also, make sure that you do not set the indicator "After end of
life" in the base method under section "Treatment of end of
depreciation" in AFAMA.

May you also consider and test the setting "Changeover after end of the
useful life" and have another phase set up that depreciation is
finishing for example "immediately".

Please check your depreciation key settings.

Please use trx AFAMA to view the Depreciation key and identify
the base method.

Now, if you check in transaction AFAMR for the relevant base method
you should see whether or not the following field is active

  Dep. after plnd.life end :

Regards

Ray